CLAIM BACK VAT ON A PCP PCO VEHICLE PCO

[jasonp]

I purchased a new vehicle on pcp ( personal contact vehicle). There is an option to purchase the vehicle at the end which i will. I bought the vehicle before forming the company and contract and vehicle is on my name. I want to reclaim the vat back under the input tax. the company is now formed and the payments for the car is coming from my bank account not the company. the vehicle is pco licenced and for business use only and i have another vehicle for personal use. the invoice is under the finance company's name. can i still reclaim the vat back?

 

[john1989]

It would have been wise to take advice before making decisions such as opening a company and purchasing the vehicle. But we are where we are.

The easiest thing, and probably the only option, is to charge the company mileage using the approved mileage rates at 45/25ppm.

 

[jasonp]

does that mean no claiming vat back

 

[john1989]

Yes

 

[ME Accountants]

To claim VAT back the invoice would need to be in your company name. As it is unfortunately not and payments come out of your personal bank it is not possible to claim back the VAT.

 

[UK Contractor Accountant]

The fact that the invoice is not in the company name I don't believe is a stumbling block- on many vat inspections I have seen the Inspector allow these vat claims.

Hmrc vat office themselves have advised some of my clients to just change the name to the company name on top of the invoice.They are more concerned whether the cost is for business rather than private

I think the best advice here to speak to the VAT office and get their ruling in writing preferably.

 

[john1989]

The fact that the invoice is not in the company name I don't believe is a stumbling block- on many vat inspections I have seen the Inspector allow these vat claims.

Hmrc vat office themselves have advised some of my clients to just change the name to the company name on top of the invoice.They are more concerned whether the cost is for business rather than private

I think the best advice here to speak to the VAT office and get their ruling in writing preferably.

How could it have been for the business of the lease was entered into before the company existed?

 

[UK Contractor Accountant]

Pre trading expenditure which also happens to be pre incorporation. Vat can still be claimed on pre incorporation expenditure subject to the normal time limits of 6 months/4 years from date of vat registration.

As mentioned above OP should go for a ruling from the VAT office before giving up on his claim.

 

[UK Contractor Accountant]

https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit32000#IDA2TKPG